CLEVELAND, May 6, 2010 (GLOBE NEWSWIRE) -- Associated Estates Realty Corporation (NYSE:AEC) (Nasdaq:AEC) today announced its intention to redeem all outstanding shares of its 8.70% Class B Series II Cumulative Redeemable Preferred Stock on or about June 9, 2010.
The 8.70% Class B Preferred Shares, aggregating $48.3 million, will be redeemed at a redemption price of $250.00 per share (equivalent to $25.00 per depositary share) plus an amount equal to accrued and unpaid dividends after March 15, 2010 up to and including the redemption date. After the redemption date, the Class B Preferred Shares will no longer be outstanding, and holders of the 8.70% Class B Preferred Shares will have only the right to receive payment of the redemption price plus accrued interest to the redemption date in exchange for their Class B certificates.
In connection with the issuance of the 8.70% Class B Preferred Shares in December 2004, the Company incurred $1.0 million in issuance costs and recorded such costs as a reduction to shareholders' equity. In accordance with generally accepted accounting principles, the Company will reflect the $1.0 million one-time non-cash charge related to the redemption as a reduction of earnings in arriving at both net income available to common shareholders and FFO for the second quarter of 2010.
This news release contains forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to vary from those projected, including but not limited to, preliminary expectations regarding the Company's second quarter 2010 and full year 2010 financial performance, which are based on certain assumptions as noted in this news release. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "expects," "projects," "believes," "plans," "anticipates" and similar expressions are intended to identify forward looking statements. Investors are cautioned that the Company's forward-looking statements involve risks and uncertainty.
Associated Estates is a real estate investment trust ("REIT") and is a member of the Russell 2000. The Company is headquartered in Richmond Heights, Ohio. Associated Estates' owned and non-owned portfolio consists of 49 properties containing 12,366 units located in eight states.
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